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Domestic Tourism Growth Strategy implementation 18 March 2014.

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Presentation on theme: "Domestic Tourism Growth Strategy implementation 18 March 2014."— Presentation transcript:

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2 Domestic Tourism Growth Strategy implementation 18 March 2014

3 discussion points… Overview of the global and domestic tourism landscape Improving the competitiveness of the sector Towards the 2020 vision - Strategic frameworks, focus, programmes, business support and engagement forums The role and rewards for business in growing tourism Intergovernmental relations and tourism 2

4 global tourism overview … Over the past six decades, tourism experienced continued expansion and diversification, becoming one of the largest and fastest-growing economic sectors in the world. Despite occasional shocks such as global recession and regional conflicts, international tourist arrivals have shown virtually uninterrupted growth – from 25 million in 1950, to 278 million in 1980, 528 million in 1995, and 1,035 million in According to the UNWTO Tourism Barometer, International tourist arrivals worldwide will increase by 3.3% a year from 2010 to 2030 to reach 1.8 billion by The market share of emerging economies increased from 30% in 1980 to 47% in 2012, and is expected to reach 57% by 2030, equivalent to over one billion international tourist arrivals which encourages markets such as ours to stay ahead of our competitors in order to reap the rewards. 3

5 Tourism growth in South Africa …  In 1993, South Africa received a mere 3.4 million foreign visitors.  By 2012, the figure had grown by 300 % to 13.5 million visitors, of which 9.2 million were tourists.  in 2012, a total of international tourists visited South Africa. This was 10.2% more than tourists who travelled to the country in More than double the 4% global average in tourist growth according to the UNWTO  The UK, USA, Germany and France remain key source markets with about 1.2 million high yield arrivals  Efforts to market in new and emerging markets in Asia and India have begun to bear fruit with China surpassing France in arrivals in 2012 with over visitors  With this level of growth, the sector’s potential to provide more youth business and employment opportunities are high. 4

6 according to the Tourism Satellite Account (December 2011) … Direct tourism contribution to the GDP went up by 5% to 84.3 billion rand in Furthermore, direct employment in the sector as a percentage of overall employment in the country went up from 4.3% to 4.5% between 2010 and 2011 representing an increase of about direct jobs in the sector from 2010 to a total direct employment of 598,432 in Total domestic tourism expenditure increased from R69 billion in 2010 to R101 billion in 2011, an increase of over R30 billion. 5

7 Domestic tourism performance …  Total number of domestic tourism trips went down from 26.4 million in 2011 to 25.4 million in 2012 recording a declining growth of 3.8 %.  Number of adult domestic tourists also went down from 13.9 million in 2011 to 12.5 million in  Although the number of domestic adult travellers and trips has been on the decline, total domestic spend by these travellers has been on the increase;  Domestic tourism expenditure(including the domestic portion of outbound tourism expenditure) went up from R million in 2008 to R in This was also an increase from R million in In 2011 domestic tourism accounted for about 58% of total tourism expenditure in South Africa as per the Tourism Satellite Account (TSA) released by StatsSA. 6

8 competitiveness of the sector … The industry’s recovery and growth is evidence that we have decisively but not completely dealt with some of the core elements affecting our competitiveness as a destination as outlined in the Global Competitiveness Study 2005 – According to this study; the south African industry had to deal with a number of factors to improve its attractiveness as a destination. The factors centred around 5 core elements of supply and demand conditions, firm/business strategies, harnessing supporting industries and sorting out the institutional and regulatory arrangements. The following issues were identified by the Competitiveness Study as hindrances to growth however the Department in partnership with some industry players are tackling some of these. They are safety and security, lack of innovation, poor skills development, inconsistent quality assurance, poor public transport, poor information provision, aviation pricing and air lift capacity, transformation if the sector, market access and collaboration between government and the private sector. 7

9 What is NDT doing to deal with challenges … Under the new Tourism Department, we set ourselves a new VISION: “To be a catalyst for tourism growth and development in South Africa” and “To be the top 20 tourism destination of choice by 2020” MISSION A strategy focused department, committed to create a conducive environment for growing and developing tourism through: innovation strategic partnerships and collaboration providing information and knowledge management service strengthening institutional capacity

10 we developed strategic frameworks … NDT is guided in its work by the National Tourism Sector Strategy (NTSS) developed with industry in 2011 and under implementation. The NTSS responds to the Growth Path and in line with the NDP It seeks to reduce unemployment, inequality and poverty through tourism growth NTSS focused the industry on the developing domestic tourism as a backbone for the sector As a result, Domestic Tourism Growth Strategy was formulated in 2012 and under implementation Frameworks for the development of niche tourism markets have been developed in Culture and Heritage, rural tourism, avitourism, events and social tourism strategies 9

11 …background - NTSS VISION To be a top 20 tourism destination in the world by 2020 VISION To be a top 20 tourism destination in the world by 2020 THEME1 T ourism G rowth and the E conomy THEME1 T ourism G rowth and the E conomy THEME2 E nhanced V isitor E xperience THEME2 E nhanced V isitor E xperience THEME3 S ustainability and G ood G overnance THEME3 S ustainability and G ood G overnance CLUSTER 1 P olicy, S trategy, R egulations, G overnance, and M onitoring & E valuation CLUSTER 1 P olicy, S trategy, R egulations, G overnance, and M onitoring & E valuation CLUSTER 2 T ourism G rowth & D evelopment 2.1 D emand 2.2 S upply CLUSTER 2 T ourism G rowth & D evelopment 2.1 D emand 2.2 S upply CLUSTER 3 P eople D evelopment CLUSTER 3 P eople D evelopment CLUSTER 4 E nablers of G rowth CLUSTER 4 E nablers of G rowth

12 strategic Objectives … Theme 1: Tourism & the Economy To grow the tourism sector’s absolute contribution to the economy To provide excellent people development and decent work within the tourism sector To increase domestic tourism’s contribution to the tourism economy To contribute to the regional tourism economy Theme 2: Visitor Experience & the Brand To deliver a world - class visitor experience To entrench a tourism culture amongst South Africans To position South Africa as a globally recognized tourism destination brand Theme 3: Sustainability & Good Governance To achieve transformation within the tourism sector To address the issue of geographic, seasonal and rural spread To promote responsible tourism practices within the sector To unlock local government tourism economic development potential

13 NTSS Priorities… Calls for a more focus on Rural Tourism Development. Setting up of a National Conventions and Events Bureau. More attention to Product and Enterprise Development. Development of a National Research Framework. Calls for the need to focus on Domestic Tourism Engage all other ministries that have an impact on tourism, provinces and municipalities. More focus on the Africans priority markets in consultation with the industry. Develop a marketing strategy targeted at the African market Develop a database of all tourism assets and explore mechanisms & ways of promoting the registration of tourism business in South Africa. Formalise structures for collaboration and interaction between public and private sector. Prioritise tourism at provincial and local government. Identify niche product development and rural tourism development

14 … rationale for domestic tourism Most people have not had an opportunity to travel in South Africa. Reasons for this vary from affordability, no incentive to travel, time constraints, unemployed and dislike travelling Lack of travelling culture especially amongst black South Africans due to inadequate marketing and information Need to increase domestic tourism’s contribution to tourism 13

15 strategic objectives … 1.Increase domestic tourism revenue. 2.Increase domestic tourism volumes. 3.Improve measures and efforts aimed at addressing seasonality and equitable geographical spread. 4.Enhance the level of the culture of travel and tourism among South Africans. 14

16 we set 2015 & 2020 performance targets … GDP (Direct):R118,4 bn (2015) and R188 bn (2020); GDP (Direct & Indirect):R318,2 bn (2015) and R499 bn (2020), Tourist Arrivals:12,1 mil and 15 mil ( 2015 and 2020); Jobs (Direct): (2015) and (2020); Jobs (Direct & Indirect): and 1,1 million in 2015 and 2020 Domestic contribution to GDP 55% (2015) and 60% (2020) Domestic holiday trips:16 mil (2015) and 18 million by (2020).

17 we re-engineered the organisation … 16 jjjjjjjjjjjjjj International Tourism Management Strategic and policy direction for the development of South Africa’s tourism potential throughout various regions of the world. Policy and Knowledge Services Strategic tourism sector policy development, monitoring and evaluation, research and knowledge management services. Domestic Tourism Management Strategic and policy direction for the development and growth of sustainable domestic throughout South Africa.

18 we strengthened our partnerships … South African Tourism Destination Marketing Organisation, set up according to the tourism act. Promotes South Africa in terms of its unique selling points as an all-season, year- round preferred tourist destination as guided by the tourism growth strategy. Tourism Enterprise Partnership (TEP) A Public Private Partnership geared towards the development, growth and sustainability of tourism enterprises. Tourism Business Council of South Africa Is the umbrella association for the tourism industry. Lobby’s and advocates the interest of the private sector on various policy and strategic platforms. 17

19 we consolidated our programmes… Service Excellence Standards- SANS 1197 Responsible Tourism Standards – SANS 1162 Tourism Month and WTD Celebrations Educators Seminars Guidelines on Visitor Information centres and support Tourism Enterprise partnership Domestic Tourism awareness – Radio campaign 18

20 we consolidated our programmes… Social Responsibility Implementation (SRI) Programme is poverty alleviation and job creation through tourism development. Branding of Visitor Information Centres Educators Seminars and Service Excellence campaigns Capacity building programme for rural districts Local government tourism training programme Tourist guides regulations (Registrars Powers, Registration, associations, database, badge, illegal guiding, enforcement, reporting etc.). 19

21 skills development & quality assurance … Tourism HRD Strategy 2008 also proposed mechanisms through the above gaps should be closed including training initiatives such as the programmes the department has now embarked upon e.g. Annual National Tourism Careers Expo (NTCE), Chefs Training for over 1600 youth, Sommelier programme – Wine and food Food Safety programme – new pilot for 100 food quality assurers Placement of candidates locally and abroad in partnership with industry, 20

22 Chefs Training programme

23 Research Approach … NTSS informs the research approach: MoU with Universities (research collaboration). National tourism research and Knowledge management committee (alignment – e.g. Indicators). Minister’s Policy Research Expert Forum (quality assurance). Development of a country (consolidated) research agenda. Current research projects (Tourist guides - cross border, destination competitiveness, service excellence etc.) 3

24 2. Skills Development 3. Market Access Business Consulting Services Funding Support (BDF) Needs Analysis, Intervention Plans, Assessments Business Consulting Services Funding Support (BDF) Needs Analysis, Intervention Plans, Assessments 1. Business Support South Africa Hidden Treasures Participation Business Linkages Exhibitions Events Advertising Marketing Collateral Website Listing Public Relations Networking Industry Competitions South Africa Hidden Treasures Participation Business Linkages Exhibitions Events Advertising Marketing Collateral Website Listing Public Relations Networking Industry Competitions Business Skills Training 4 Modules = Admin, Finance, HR, Marketing Business Skills Training 4 Modules = Admin, Finance, HR, Marketing Learning Networks Business Leadership Programme Mentorship TEP Toolkit Workshops Tourism Awareness Tourism Channel Website Planning Communication in Tourism Pricce Setting Quality Assusrance and Customer Care Exhibitions Business Planning Marketing in Tourism Business Administration TEP Toolkit Workshops Tourism Awareness Tourism Channel Website Planning Communication in Tourism Pricce Setting Quality Assusrance and Customer Care Exhibitions Business Planning Marketing in Tourism Business Administration Customer First Training TEP Strategic business support …

25 ProvinceTotal Eastern Cape420 Free State366 Gauteng964 KwaZulu-Natal1176 Limpopo321 Mpumalanga436 Northern Cape195 North West220 Western Cape982 Total5080 Northern Cape Western Cape Eastern Cape Free State KwaZulu- Natal Mpumalanga Gauteng Limpopo North West

26 Support for rural job intensive tourism infrastructure projects … Projects to be considered are those that: Unlock domestic tourism opportunities, Competitive and position South Africa’s tourism industry Generate a labour content of between 35% and 60% of the total project cost Target rural areas and areas with the highest unemployment rate Are viable and have the potential to be sustainable in the long-term Are in line with the NTSS and DGTS focus areas

27 Examples; Kgamothaga – Atteridgeville Mamelodi Rondavels Moretele Park Chalets

28 Government cannot do it alone … how can business partner? Strategic partnerships in business support, transformation and business linkages Increasing economic opportunities through staff training and customer satisfaction which increases repeat rates, volumes and yield. Positively influencing community attitudes towards tourism through local sourcing of products Building your brand by incorporating local culture, supplies and services in product development to offer a unique guest experience Decreasing operating costs by sourcing local goods and services and reduce leakages from imports and transport costs Creating inclusive business models that improve employment practices, build business linkages and initiatives that demonstrate positive social and economic impacts reducing poverty, unemployment and inequality. 27

29 ...IGR implications Familiarisation with the domestic tourism strategy Development of domestic tourism plans and campaigns linked to Provincial and District approaches Roll out of such domestic tourism plans and campaigns in partnership with District and Provincial sector Departments Identify programme linkages with National Sector Departments, external/ private/ CBO & NGO and donor funding partners 28

30 ...thank you Soza Simango


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